Community Health Q4 Earnings Beat Estimates on Lower Expenses

Community Health Systems, Inc. price-consensus-eps-surprise-chart | Community Health Systems, Inc. Quote

CYH’s Full-Year 2025 Update

Community Health Systems reported revenues of $12.5 billion, down from $12.6 billion in the prior year. The company posted adjusted operating income of $1.19 per share compared with an adjusted operating loss of $1.03 a year ago, reflecting significant bottom-line improvement.

Full-year adjusted EBITDA slipped marginally to $1.52 billion from $1.54 billion in the previous year. The total operating expenses declined to $11 billion from $12.1 billion in 2024.

CYH’s Q4 Operational Update

At the end of the fourth quarter, Community Health operated 69 hospitals, down from 76 in the year-ago period. Patient days declined 8.5% year over year, while the average length of stay decreased 2.3% to 4.2 days. Occupancy rate slipped to 49.6% from 50.5% in the prior-year quarter.

Adjusted admissions fell 6.8% year over year in the quarter under review. On a same-store basis, admissions edged down 0.3% from the corresponding prior-year period.

As of Dec. 31, 2025, CYH had 10,458 licensed beds, reflecting an 8.3% decline from the year-ago quarter. The reported figure was lower than both the Zacks Consensus Estimate and our estimate of 10,478.

Total operating expenses declined 11.1% year over year to $2.7 billion in the fourth quarter, primarily due to lower supplies, other operating expenses, lease costs and rent. The metric came in 7.5% below our estimate.

Net interest expense increased 1.8% year over year to $222 million, but was lower than our estimate of $225.4 million.

The company reported net income of $160 million in the fourth quarter compared with a net loss of $28 million in the year-ago period, reflecting improved expense management despite volume pressures. Adjusted EBITDA fell 7.7% year over year to $395 million in the quarter under review, due to lower volumes and reduced net benefit from supplemental reimbursement programs.

CYH’s Financial Update (As of Dec. 31, 2025)

Community Health exited the fourth quarter with cash and cash equivalents of $260 million, which increased significantly from $37 million at 2024-end. Total assets of $13.2 billion decreased from $14.1 billion at the end of 2024.

Long-term debt amounted to $10.4 billion, which fell from $11.4 billion at 2024-end. Current maturities of long-term debt were $16 million.

At the end of 2025, CYH generated operating cash flows of $543 million, up from $480 million in the year-ago period.

CYH’s 2026 Guidance

The company anticipates net operating revenues between $11.6 billion and $12 billion for 2026 compared with the 2025 figure of $12.5 billion. Adjusted EBITDA is estimated to be in the range of $1.34-$1.49 billion compared with the 2025 level of $1.53 billion.

The company expects the 2026 bottom line to be between a loss of 60 cents and break-even.

Depreciation and amortization expenses are predicted to be in the range of $365-$385 million for 2026.

Net cash from operating activities is estimated to be between $600 million and $700 million in 2026. Capital expenditures are anticipated in the range of $350-$400 million.

The weighted average common shares outstanding is currently estimated at around 136 million.

Community Health currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

How Did Other Healthcare Stocks Perform?

Here are some stocks in the broader Medical space that have also reported earnings for the December quarter: HCA Healthcare, Inc.HCA, The Ensign Group, Inc. ENSG and Tenet Healthcare Corporation THC.

HCA Healthcare reported fourth-quarter 2025 adjusted EPS of $8.01, which outpaced the Zacks Consensus Estimate by 8.8% on the back of strong admissions. Modest gains in emergency room visits and a rise in revenues per equivalent admission also supported performance. The upside was partly offset by HCA Healthcare’s elevated operating expenses.

The Ensign Group reported fourth-quarter 2025 adjusted EPS of $1.82, which beat the Zacks Consensus Estimate by 4% on the back of improved occupancy rates, higher patient days and stronger skilled services performance. The positives were partly offset by higher expenses. The bottom line increased 19.5% year over year. ENSG’s revenues rose 20.2% year over year to $1.36 billion but marginally missed the Zacks Consensus Estimate by 0.5%.

Tenet Healthcare reported fourth-quarter 2025 adjusted earnings per share (EPS) of $4.70, which surpassed the Zacks Consensus Estimate by 15.2%. The bottom line increased 36.6% year over year. Tenet’s net operating revenues advanced 8.9% year over year to $5.53 billion. The top line beat the consensus mark by 1.4% on the back of higher same-facility revenues, a favorable payer mix and improved acuity. The upside was partly offset by rising operating costs, particularly supply expenses.